Established in 1886, the city was named after Bryan T. Barry, an early landowner who sold 300 acres to settlers.

After the St. Louis Southwestern Railway completed a line between Corsicana and Hillsboro in 1888, residents moved to the present location near the railroad tracks.

A public school opened in 1896 to serve the settlement, which also had a post office, general store and gin.

By 1914, the community of 400 residents had two banks, a newspaper, hotel, stores, eateries, a blacksmith, and three churches.

The City of Barry is served by the Blooming Grove Independent School District.